Local News

FM sales tax revenue keeps rising

Another record set in May

Fort Morgan continues to ride the wave of increased sales tax revenues that has been filling city coffers and keeping smiles on city leaders' faces.

"So far this year, we're up more than $215,000 over last year," City Treasurer Jeanne Kinney said, audibly excited by the numbers. "That's really good. We're still seeing increases."

The city's total sales tax revenue for May was $543,932, which set a new record for that month. It also was $43,821 more than the May record set last year.

"We had excellent numbers in May," Kinney said.

The 2014 total seems even better when compared with earlier years, which were more than $120,000 less in 2012 and lower still in years before that.

And even with many months of year-over-year gains, these higher numbers for this May surprised Kinney.

"I was thinking that this would be the month we would see something leveling out," she said, not the slightest bit disappointed to be wrong with that prediction.

Yet, the city likely is still enjoying the sales tax revenue bumps from the spring 2013 opening of Maverik gas station and convenience store and then the September 2013 opening of the Hampton Inn, she said. That could mean less of a big jump from previous years in the sales tax reports in coming months.

"After September, I expect not to see as high of increases," Kinney said of the monthly totals.

However, there is some new economic development on the horizon that could either add to sales tax revenue or just divert its collection from one business to another.

This fall, Taco Bell will enter the competition for residents and visitors' fast-food dollars and a new auto parts store is looking to come in and compete for car owners' money at some point in coming months or years.

"Hopefully, they'll do really well here," Kinney said, also adding positive wishes for the businesses that will face more competition from the new ones.

Kinney also pointed out that the large Interstate 76 construction project is starting to wind down, as are a variety of other area building projects. That could impact sales tax revenue, as well, she said.

"Construction workers do spend money, and then there is the use tax" that builders have to pay the city for materials they bring into Fort Morgan, she said.

She said that the city is always looking to encourage economic development, as well as housing development projects for the workers that economic development could bring.

Any new economic development or housing development projects that involve construction also likely would have positive impacts on local sales tax revenue, Kinney added.

However, no one is able to predict how long the wave of increased spending in Fort Morgan and resulting sales tax revenue increases will continue, she was quick to point out.

"I would hope that we could keep it going," Kinney said of the record-setting sales tax revenue totals so far in 2014, which she partially attributed to people just spending more money in general.

But she said she also would be happy with it "staying at this level" and not dipping down to the levels of previous years.